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On June 30, 2024, Countryside Farms purchased custom-made harvesting equipment from a local producer. In...

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Accounting

imageimage On June 30, 2024, Countryside Farms purchased custom-made harvesting equipment from a local producer. In payment, Countryside signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Countryside initially value the equipment? How much interest expense will Countryside recognize in its income statement for this note for the year ended December 31,2024 ? Note: Use appropriate factor(s) from the tables provided. Round your answers to the nearest dollar value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1 ) \begin{tabular}{|l|l|} \hline Table or calculator function: & FV of $1 \\ \hline Future Value & FVA of $1 \\ \hline FVAD of $1 \\ \hline Present Value & PV of $1 \\ \hline Interest expense & PVA of $1 \\ \hline & PVAD of $1 \\ \hline \end{tabular}

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